Statement of Administration Policy: S. 1511 - Older Workers Benefit Protection Act

(House)
(Pryor (D) AR and 45 others)

Although S. 1511, as amended, is a significant improvement over the version which was originally introduced in the Senate, the Administration opposes its enactment. The Administration strongly supports the Age Discrimination in Employment Act and a carefully crafted response to the Betts decision. However, this bill continues to cause concern because it would;

—  unduly restrict the ability of State and local governments and private employers to integrate benefits in employee benefit plans;

—  require that a retiree's health plan must have a specified minimum value before an employer is permitted to offset its value from severance payments otherwise due the employee;

—  continue to permit an employer to offset the value of pension sweeteners from severance payments, but only in the case of immediate and unreduced pensions; and

—  create a dual standard of what constitutes age discrimination by prohibiting practices by State and local governments and private employers that are permitted for Federal emplovee benefit plans.